Trump Slams Interest Rate Hikes, Ignoring Hands-Off Tradition Toward Fed

Trump Slams Interest Rate Hikes, Ignoring Hands-Off Tradition Toward Fed

"Looking ahead, my colleagues on the FOMC and I expect that, with appropriate monetary policy, the job market will remain strong and inflation will stay near 2 percent over the next several years" said Powell in prepared congressional testimony on the central bank's semi-annual Monetary Policy Report on the USA economy Tuesday.

When asked about the stock market possibly falling if the U.S. imposes duties on such a large amount of goods, Trump said: "If it does, it does". "Debt coming due & we are raising rates - Really?"

He also doubled down on his trade fight with China, vowing in an interview with CNBC that aired Friday that he was ready to impose tariffs on US$500 billion worth of Chinese imports - roughly all the goods China sends to the United States each year.

"I'm not thrilled", he said.

Trump's comments come amid a multitude of trade threats between major economies around the globe and after his initial tariffs on Chinese goods sparked a major conflict. Mr Trump came under fire for his lukewarm support during a news conference with Mr Putin for the finding by U.S. intelligence agencies that Russian Federation meddled in the 2016 election.

Still, new tariffs could help Trump's Republican party going into November's congressional elections.

Trump also said the "being taken advantage of" on trade and monetary policy. The latter is usually seen as the domain of the Fed, while the U.S. Treasury secretary is typically the chief spokesman on the dollar.

He likewise also took aim at the dollar, saying a higher value "puts us at a disadvantage" and adding that the Chinese yuan "has been dropping like a rock".

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Randall Kroszner, a former Fed governor, said the central bank has withstood political pressure before and will continue to do so under Powell's leadership. Mr Mnuchin has faced criticism from worldwide counterparts about the USA talking about currencies before. With those nations nearly certain to retaliate, the result could be higher prices for Americans, diminished export sales and a weaker US economy by next year. "I want them to do well", he said.

In the same interview, taped Thursday at the White House, Trump broke with a long-standing tradition at the White House and voiced displeasure about recent actions at the U.S. Federal Reserve. A strong currency tends to make a country´s exports more expensive.

Trump repeated his criticism a day earlier of the U.S. Federal Reserve's policy on raising interest rates saying he is concerned the central bank will raise interest rates twice more this year, a White House official told CNBC.

Fed officials voted in March and June to raise interest rates, most recently to a range between 1.75% and 2%, and have penciled in two more rate increases this year. CNBC released details of the Trump interview in a story on its website Thursday.

USA equity futures turned lower with European stocks on Trump's threat. Earlier this year, he used national security as a justification for taxing imported steel and aluminum.

Steep tariffs already are in place on $34 billion in Chinese goods, and a second tranche of $16 billion in products is under review and could soon be added.

President Donald Trump made it clear that, if necessary, he is ready to slap tariffs on all imports from China.